GOVERNMENT CLOSES MINING PROMOTION FUND

The Mozambican government has decided to close the Mining Promotion Fund (FFM), an institution created in 1988 to provide technical and financial support to artisanal and small scale miners.The decision was taken during a meeting of the Council of Ministers (Cabinet) held in Maputo on Tuesday.To replace the FFM the government has created the Geological and Mining Institute (IGM) to increase and strengthen the national capacity to utilise geological and mining data and to certify mineral production.According to the government spokesperson, Deputy Justice Minister Alberto Nkutumula, “the main role of this institution is to conduct exploration, research and identification of mineral resources in our national territory”.He continued, “the secondary role is to develop and disseminate technologies that can add value to the mineral resources in a sustainable manner”.The IGM will be headed by three directors, one of whom will be nominated by the Prime Minister with the others being nominated by the Minister for Mineral Resources. The audit committee will be appointed by the Minister of Finance.The IGM will be based in Maputo and will take over the human, financial and material resources of the FFM.The Council of Ministers also ratified loan agreements with the Japanese International Cooperation Agency (JICA) and Italy.

The 84 million US dollar loan from JICA covers the first phase of the development of the northern Mozambican port of Nacala.The loan from Italy is for 60 million euros to finance the construction of a dam at Nhacangara in Manica province and the construction of infrastructure to improve drainage in Maputo.The dam at Nhacangara, budgeted at 39 million euros, will provide water for the central city of Beira and for irrigating Inhazonia in Manica province.